Stock market climbs higher into record territory
16-Dec-19 16:20 ET
Dow +100.51 at 28235.80, Nasdaq +79.35 at 8814.24, S&P +22.65 at 3191.45
briefing.com
[BRIEFING.COM] The stock market rose further into record territory on Monday, as the Phase One trade deal and an improving Chinese economy helped maintain the market's bullish bias. The Nasdaq Composite (+0.9%) rose above the S&P 500 (+0.7%), Dow Jones Industrial Average (+0.4%), and Russell 2000 (+0.7%).
The initial reaction to the trade deal was muted on Friday, so today was less about the actual deal and more about what it means moving forward: less uncertainty, and optimism, in the economic outlook. This view contributed to Monday's strong open, which accounted for most of today's gains as the S&P 500 drifted sideways for most of the session.
China's industrial production and retail sales figures, which grew faster than expected in November, added to the positive economic outlook also shared by the homebuilders. For instance, the NAHB Housing Market Index hit its highest level since 1999, increasing to 76 in December (Briefing.com consensus 69) from 69 in November.
The S&P 500 energy (+1.4%), utilities (+1.3%), and health care (+1.1%) sectors each rose more than 1.0%. The market also continued to draw influential support from Apple (AAPL 279.86, +4.71, +1.7%).
Conversely, the industrials sector (-0.03%) was pressured by weakness in shares of Boeing (BA 327.00, -14.67, -4.3%) and FedEx (FDX 164.10, -1.57, -1.0%) following separate reports from The Wall Street Journal.
Boeing is reportedly considering halting or cutting back production for its 737 MAX amid continued re-certification uncertainty. Amazon (AMZN 1769.21, +8.27, +0.5%) reportedly banned third-party sellers from using FedEx Ground for Prime shipments until delivery performance improves.
In M&A activity, DuPont (DD 64.89, +0.09, +0.1%) agreed to merge its Nutrition & Biosciences unit with International Flavors (IFF 120.00, -13.98, -10.4%) in a combined $45.4 billion deal. WPX Energy (WPX 11.90, +0.99, +9.1%) agreed to purchase Felix Energy for $2.5 billion.
U.S. Treasuries finished on a lower note, driving yields higher in a curve-steepening trade. The 2-yr yield increased three basis points to 1.53%, and the 10-yr yield increased seven basis points to 1.89%. The U.S. Dollar Index declined 0.1% to 97.05. WTI crude increased 0.2%, or $0.10, to $60.21/bbl.
Reviewing Monday's economic data:
- The NAHB Housing Market Index for December increased to 76 (Briefing.com consensus 69) from 69 in November, hitting its highest level since 1999.
- The Empire State Manufacturing Survey for December increased to 3.5 (Briefing.com consensus 3.5) from the prior month's reading of 2.9.
Looking ahead, investors will receive Housing Starts and Building Permits for November, Industrial Production and Capacity Utilization for November, and the JOLTS - Job Openings survey for October on Tuesday.
- Nasdaq Composite +32.8% YTD
- S&P 500 +27.3% YTD
- Russell 2000 +22.4% YTD
- Dow Jones Industrial Average +21.0% YTD
Market Snapshot
| Dow | 28235.80 | +100.51 | (0.36%) | | Nasdaq | 8814.24 | +79.35 | (0.91%) | | SP 500 | 3191.45 | +22.65 | (0.71%) | | 10-yr Note | -26/32 | 1.879 |
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| | NYSE | Adv 1993 | Dec 886 | Vol 1.1 bln | | Nasdaq | Adv 2011 | Dec 1177 | Vol 2.2 bln |
Industry Watch
| Strong: Energy, Utilities, Health Care, Communication Services |
| | Weak: Industrials |
Moving the Market
-- Large-cap indices close at new record highs
-- Mostly broad-based advance, although Boeing (BA) and FedEX (FDX) dragged on the industrials sector
-- Trade optimism, upbeat China data, bullish bias intact
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WTI crude inches higher, stays above $60
16-Dec-19 15:25 ET
WTI crude settled up $0.10 (+0.2%) to $60.21/bbl in a quiet session. Staying above the $60 mark may have been good for sentiment. |
